When setting up a business, the future entrepreneur has a wide choice of legal forms to choose from. Whether EURL or SASU, making a choice can quickly prove complex for administrative neophytes. Today, we explain how to create an SASU: Société Anonyme par Actions Simplifiée. Introduced in 1994, this special legal status is a more flexible alternative to the SAS, which is becoming increasingly popular with entrepreneurs.
The importance of choosing the legal form best suited to your business!
The SASU (société anonyme par actions simplifiée - simplified joint-stock company) is a legal form of company with a single shareholder. The management of the sole shareholder does not require him or her to also hold the position of Chairman, as this role can be filled by a third party. In this way, the powers of representation of a SASU, whether managed by a natural person or a legal entity, can be delegated to the legal representative.
This status is ideal for young entrepreneurs, and can be adapted to a variety of activities: commercial, craft, agricultural or civil. Although similar to the SAS, the SASU offers greater flexibility in its operation, and can evolve according to the organization of your structure.
The SASU is an attractive alternative to the classic SAS and the EURL
The main differences between these two legal forms are their unipersonal nature and the absence of a minimum capital requirement. In fact, the 2008 law on the modernization of the economy greatly simplified the operation of the SASU, offering a host of advantages. Today, the SASU is increasingly used by entrepreneurs, who see it as a simple way of organizing their business.
However, care must be taken when signing the articles of association, as the formalities involved are onerous in terms of creation and management. This jurisdiction is best suited to fast-growing start-ups.
The SASU offers a number of advantages to entrepreneurs wishing to set up their own structure
- Unlike auto-entrepreneurs and EURLs, SASU chairmen are covered by the general social security system, rather than the RSI. In return, they cannot contribute to unemployment insurance, but can receive the ARE in the absence of remuneration.
- The sole shareholder's liability is limited, which means that he or she is liable only to the extent of his or her contributions. This protection enables them to separate their personal assets from the company's assets, thus avoiding any risk in the event of difficulties.
- When making company decisions, the Chairman does not have to call a General Meeting. In this way, he can be the sole decision-maker and avoid creating tensions between his staff.
- If the company undergoes major expansion, the SASU can easily be transformed into an SAS, with a view to bringing in new partners and/or investors. The formalities are very straightforward: a share transfer or a simple opening of the share capital.
- Unlike the EURL, the sole shareholder of a SASU has no social security contributions on company dividends.
Despite its positive points, the SASU, like all legal forms, has a few disadvantages to consider.
- To set up a company and define its articles of association, it is important to be rigorous, given the complexity of this jurisdiction. It may also be advisable to call in a specialist to draw up the articles of association, at additional cost.
- A SASU must appoint a statutory auditor for any contribution in kind, if the company exceeds the following ceilings: sales in excess of 2 million euros, a workforce of over 20 and a balance sheet total of one million euros.
- The SASU has higher social security contributions than the self-employed regime. Employer and employee contributions must be paid by the sole shareholder, which means that he or she needs to think carefully about how best to optimize social security contributions and cash flow.
- Like the SAS, the SASU prevents the company from issuing shares or bonds on the stock market. However, it is possible to increase capital or raise funds.
The SASU is therefore an attractive legal form for sole proprietorships with high development potential. With similar characteristics to the SAS, the SASU is distinguished by its single shareholder and organizational flexibility. As with all legal forms, however, you need to be vigilant about its weaknesses. The costs involved in setting up and managing the company can quickly add up. Take the time to choose the status that best suits your business.
SASU is an interesting legal form to consider today!
Written by our expert Maeva Girardot
September 7, 2017
